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tv   [untitled]    February 18, 2015 12:00am-12:31am PST

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>> good evening it's that monday february 9, 2015, and it is 531 this is the small business commission meeting mr. president, before we do the role call i need to make a note due to technology complications beyond the departments and city's control the agenda did not get poefd on our website so we need 2 hours in advance the agenda was posted at the library and the room on time in execution with our da because we don't have any action items on the agenda i said it was our
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discretion to move forward with the meeting i want to be clear with the public and perhaps we can just call and see if there's call for any public comment on that. >> let's call the meeting to order if there's phenomenon or anyone from the public that objects please let us know substantially we'll take that matter up at the later meeting there's no action so we're on to addressing any items but we'll precede with tonight meeting seeing no objection can we have the role call. >> so commissioner president adams commissioner dooley commissioner dwight commissioner ortiz-cartagena is
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on his way commissioner white commissioner riley and commissioner tour-sarkissian mr. president, you have a quorum. >> all right. so the first matter of business as also the general public comment this allows members of the public to comment generally on the issues and suggests now items for that the future any public comment on that item? seeing move on to item 3. >> item 3 presentation and discussion on the city and county of san francisco economic strategy report before you tonight, you have a presentation by ted iguana the city's chief economic ate and in our binder is the draft report the full draft report and lou also you
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have a power point presentation. >> welcome gentlemen. >> good evening, commissioners it's great to be back before you todd with the office of economic workforce development it's with a lot of pleasure we're able to come before you tonight with the i can't want to the san francisco economic strategy as you recall back in 2004 the voters approved proposition i is mandated the city develop and in a competitive strategy for the city that strategy led by your office in coordination with the torres office published the report in 2007 has been a guiding document for our office concluded the office of small business to strengthen our economy and connect san franciscans to the jobs the proposition requires that the city provides and do conduct
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periodic updates the economic strategy today is the culmination of our currently up to date strategy we want to do a couple of things first is to provide an overview of the key strategies goals and second we want to review key action the city has taken there's a range of actions from creation educations to transportation but we wanted to do for the small business commission as well as business development month generally and ted my colleague will be joining me to do that portion and ted e gone will present the core of the strategy as well as continuing the surveillance and i'll be coming back up to the
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podium to discuss our conclusions and look forward to a robust discussion with the commissioners. >> welcome. >> hello so as todd mentioned 5 key foundations that the 2007 economic strategy covered it gave us a myriad of policies and actions today in the interest of covering things purview i'll be highlighting things regarding our business climate and the neighborhood work. >> would that be easier for you to use that. >> yes. okay so the first thing was recommendation was to create a local issue that promotes the qualities we've heard from businesses that are payroll
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expense taxes and they thought that was great so in 2007 sorry 2012 through a lot of hard work with the community and input from groups like yours including the small business up to one million dollars the gross receipt tax were passed in 2012 we're in that season and hopefully it is going smoothly it's our first payment in february the outreach is strong we've worked with the community and excited to see this phased in second recommendation dealt with business outreach and we've - we're proud womd helps with the small business center that was
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opted since the publication and our work on the investment crossroads those are things we are doing to increase the communication with the private sector we also worked hard to strengthen our private sector partners so our work with different business and merchant associations the ethnic lgbt commerce and the china sf and sf asia with sf matdz a number of organizations we work with and again, it's to keep the communication what's working and not how the programs can be improved we laefrnd the one stop business center in 2008, and regina's team did that more than 16 thousand small business clients have been seen a as of may of last year that's. >> huge number and a great way
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to connect with the small business community and provide the support and developed an online perpetual for the experience from home as people are interested in starting their own business in 2013 we launched that portal that was phase 2 now phase 3 do the creating of the process and find ways to streamline and make it more easily to navigate for small businesses as a part of the - in 2010 oewd did a small assessment and got a lot of information from small businesses that resulted in the cb g b in ways that small business better access and access to capital was one of the concerns for small business a
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number of the resolving loan funds the micro loan program and after because of this because of our increased communications with the business groups we are here about problems and discover issues with ada and lawsuits we developed the americans with disabilities act assessment program which is 2 hundred and 50 businesses and the storefront to help with the storefront vacancy and the job squad that continues to facilitate communications and continue to talk with small businesses it's hard to get out of your offices and sometimes to learn about what is going on so a tool for small businesses to access so that go is to the increase of the small business services
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win city hall we're using sales force and see what each other a dog and what programs their assessing and we've also again continued to work with our department of workforce development organizations to streamline our complying client referrals sometime is the fact we have a federal grant and moved that in house you'll see the businesses have a much more streamline exercises with the small businesses and constantly accessing ca a number of programs with minimal in takes we all know the city is one of our birth vendors and access to the spending it is important so the contract monitoring division
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it has done a lot of work to bring more businesses into local business entrepreneurs and to connect with subcontractors through that program they host monthly yumdz and targeted focus on women owned businesses to increase the women owned businesses that that on the list to bid access to the city spending so that's been a invites thing we looked forward to more of that finally a little bit outside but looking at the small business purview and the neighborhood commercial areas that's been our work to promote the neighborhoods to visitors with the travel association partnered with a number of merchant associations to do a better job of information around the
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neighborhoods to the travel associations website and into they're meeting plan to insure better access and launched the 25 key neighborhoods we're focusing on to really connect to the different programs available for small businesses and we've worked to spend money on beautifying our commercial districts $6 million in sf grants across 47 businesses and our investment investments team working with the city to coordinate different projects for where we'll have the most emphasis beautifying in a prioritized away way that benefits the neighborhood that's my coverage of things we've done since 2007 as a result of the strategy now ted will talk about
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isaac how those things are impacted our folks. >> good evening. i'm ted el gone the chief economic it as prepared this spread they've asked us to help with the economic performance we've done see i'm going to briefing highlight that but want to make sure there's copious detail behind the slides so if you have questions i'm happy to go-go intot details we've lushthd 2004 to 2010 a lot has changed since 2010 it was the depth of the revision and 2014-2015 we're the fast growingcy if the united states and we have a record in performance but 2004 to 10 was a
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complete business cycle looking at the trough we were in at crash and the height thought or the debit of the great recession so the same points you'll see what structurally changed not only when things were down or up or vice vs. but apples to apples from that prospective not an opportunity like we don't know where we are where we a compare to the past although your performance has been unprecedented so beamed when we talk about 2004 to 10 this is not an update but a result of a longshoreman prospective of the economy was it faces we've made a lot of progress since those issues but the long term issues this is
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a long-term planning effort intended to be yund again and again and this performance which sets the stage for the city's long term challenges no doubt we've made progress but issues that still remain when we look on the city's performance with job creation through 2010 and since 2010 there's a different story the city's job performance has for the most part been flat the peak in 2008 before the recession was lower that's a history of thirty years of flat economic performances as far as jobs are concerned that total number of jobs didn't change what was in the jobs changed a grateful we've changed a lot within the
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composition but 2005 and mr. taylor particularly since the recovery of 2011 the city's share of the regional job performances has increased from the mid 1960s through 2005 so one of the things we're witnessing in the bay area economy the importance of significance for san francisco relative to some of the suburban initiative but the challenges we've talked about that picked up during the thirty year period we were times when it was flat remains to be seen at the simplest level in that kind of overview flat number of jobs changes within the economy and the simplest way to describe the city's economic driver industries that compete globally
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and tend to cluster in san francisco and thrive that based on the kind of businesses in san francisco officers those types of businesses like the creative industry sector and the tech sector and other mediums on one hand and the experience for visitor industries on the on those are strong for a number of years particularly like a lot of growth it the technology sector but another piece of our economy the local sect that is growth slowly the trade and manufacturers industries and a lot of sporting neighborhood services during the period we looked at 2004 to 2010 those industries lost jobs 0 while the creative industry and the visitor industry gained jobs that's the simplest way to
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describe it not only from 2004 to 2010 but over a long term that change in the industry composition is data active for the groemz of the city our two strongest cluster in the experience industry cluster has very different employment profiles virtually everyone that works in the industry has a 4 years degree or a bachelor and has a high wage over $35 an hour and that's meeting the profiles by craft only 50 percent of san franciscans don't have a 4 year dressing degree and others less this is creating job opportunity for people that are well educate
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experience cluster creates the jobs for people who are occupied by people with less education and low paying industries like restaurant that serves food and retail trade that in many seeshlths of the city sports visitors so when those two sectors are the ones that grow you turned at the end to create job opportunity at the top and bottom not in the middle the industries that are shrinking in san francisco the local industries are the ones that are fairly well positions to offer that middle strait to of jobs but overall the economics are not growing it's accounting for the disparity and private jobs of the city and ultimately reflect in the will determine graphics of the city so we're
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seeing the grow gross e growth in the lower parts of san franciscans and even with the housing as expensive as it is to low population in the city and it's a high ends the upper income population is growing it's really the moderate or low up to 50 percent up to one hundred percent of average that is climbing where people are moving out of san francisco and many areas within the bay area what that means another way to look at that industries that can thrive in san francisco business climate are doing so not creating a boo balance of opportunity of jobs the industries that offices these kinds of jobs are struggling
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i'll not say about this recovery of 2014 it's balanced we've got manufacturers since 2010 that was not something we saw before the 1980s we've seen the job growth across the board that in a gates a lot of things we're talking about but i have a concern the city's sustained growth will run into the constraint we'd like talk about in the next slide that makes it increasing difficult for the industry to continue to add jobs that's why i think the strategy in what we're trying to calling your attention to proposition i requires the economic development plan to conduct a survey of jobs whether there are barriers in san francisco way i did this when of the streaming was being developed in
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the controller's office combined the survey routine with our strategic analysis how san francisco ranges with other barrier locations on different categories of businesses what we found is san francisco relatively high in 3 types of businesses compared to under the circumstances the commercial and real estate costs are not only high to other communities in the united states but by various standards by the housing costs i'll talk about a second barrier but relatively high rent and ultimate office employment space locations within the bay area that gap is widening so our top disadvantages are commercial real estate and not able and their increasing and even bigger category than
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real estate is other costs many businesses spend a lot of money on labor our labor costs are directly tied to the housing costs disadvantage that means it's more expensive to create a job in san francisco like other places like in alameda-contra costa county and the bay area that aligns to the pattern we've seen in what a types of industries are growing the industries that don't thrive in san francisco are the ones that are growing up and doing better in other parts of bay area other areas are doing a better job of offering jobs to san franciscans that's why the business captains is important real estate is wan and labor is bigger and the third one that comes in third when you run the numbers is the business tax issue so san
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francisco's is a high relative tax location within california it's in the top 3 it adds to the additional costs of doing business but let's in the premium that is tied to heirs and less than the commercial real estate costs so over the long run the city's economic growth is making progress on the barriers so that will allow the businesses of every type of to allow opportunity for people in san francisco and begin in time to reverse the pattern of inequality and to talk about the future and the future plans streaming i'm going to turn it over to todd now i'll be happy to answer any questions that you have. >> and see the economic stream
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is focused on where we go from here todd's - we've grouped those into for the most part is the focus on housing and the cost of housing as with relates and passed on to smdz to costs you know the mayors has proposed an aggressive housing strategy for thirty thousand housing 20 percent are 0 low income folks and 50 within reach for the low income san franciscans and the competitive for about and the ability to connect san franciscans to passageway for crazy and jobs i'm sure you're aware of small businesses are
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the drivers and creators of jobs the challenges is in fasting the following has the skills and training so that through our academy whether city build or our housing academy we need to remain focused on those passageway and insuring that people have the lards of opportunity that's not it if you deserve to move up you have the lards of opportunity to take advantage increase our earning power and third as was mentioned the business portal you've seen the briefing from jane and close work with regina we're not rest with the first phase of the business portal we're working on the second facing phase it will look at how to streamline the
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progress the portal makes it easier for the businesses to see that you hear if our constituents and people in the commission we need to do better to make the process easier not only easier to navigate wear moving forward and it's a key priority we're also focused as ted mention during one the key barriers on the cost of rising rattling while 9 city if directly control the cost of real estate we're through zoning powers and others how to insure that enough space is developed and made available for all sectors of the city's economy and pdr businesses the mayor laid auto a key provision in building new pdr new 12ri8 space in the city not only the tools
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of economic development but but power of zoning and land use we're focused again on number 5 supporting the local industries not only the retailers and smshz but the neighborhood commercial coordinate and focusing think outside the box 25 corridors you see those strategies being revolted out across the city and attacking the challenges that those neighborhoods have with consistent and interim think community engagement to address the real needs on the ground we're focused and didn't spend a lot of time but focused on transportation from and capacity this is the challenge whether
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you're a measuring e manufacturing business in district 10 or trying to get in on bart to work downtown whether its employees or customers transportation capacity is a key focus of us that's ultimately a limiter how much the city can be able to support the needs of the convoy we're focused on transportation a number of key areas we didn't spend too much time but i'm happy to talk about finally the economic strategies laid out 4 areas that are priorities strengthen the infrastructure that's manufacturing industrial businesses as the key foundation for the economy people that are moving the goods and distributing food from the wholesale market to the hotels and restaurant we need to upgrade hotel and tourism and
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ted laid auto in the economic strategy a vision where the neighborhoods are a driver for tourism people want to come to the city to experience the hate and see the mission and go to chinatown and go to the sunset and we also need to continue to retain large sectorors whether banking and finance and professional services those businesses have is to know multipleers that cascade through the knew one that is cut off on the bottom of the screen is the startups new businesses to create environment so again, a that's a lot of ground to cover commissioners in a short amount of time we'll be happen to take


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